Are You Ready With Your Financial Goal Worksheet?
Sep 25, 2018

Author: Aditi Murkute

Benefit Investors1909

Anaita, is a workaholic, who wanted to spend her one Sunday evening leisurely after completing all her personal work. It included paying her credit card bills, getting the car serviced, visit the tailor to get a dress stitched for the coming festive season, cooking, and laundry.

Unfortunately, Anaita couldn’t spend her evening peacefully because she overslept and didn’t factor in the time required for each task. Most importantly, she did not plan to execute each task on a priority basis.

Anaita represents most of us who aspire for a peaceful weekend but end up stressed out. This is because we don’t prioritise our tasks and plan our day well to accomplish a set goal. We procrastinate more often to push things for later.

Benjamin Franklin said, "By failing to prepare, you are preparing to fail".

Even blissful retirement is one of the many aspirations of our financial freedom, however, only a few works on it judiciously along with other financial goals.

[Read: 4 steps to an early retirement]

[Also read:  8 Key Lessons On Financial Freedom From ‘Rich Dad, Poor Dad’]   

The first step to achieving your goal is to take a moment to respect your goal. Know what it means to you to achieve it.”— Dwayne Johnson

Setting a financial goal is very important because it provides a purpose, meaning, and it is a roadmap to accomplish the envisioned goals. It is a key to effective planning.

A goal without a plan is only a dream.”— Brian Tracy

The goals set must be specific, measurable, achievable, realistic, and time-bound. In short, your financial goals should be S.M.A.R.T.


[Read: How to Set S.M.A.R.T Financial Goals]

Make sure you maintain a worksheet for your financial goals for reference so that you can keep a track of it and review it later. Here’s how you should go about maintaining it…

  1. Create a comprehensive list of all your financial goals

    By listing down each of your financial goals, you start understanding yourself and your responsibilities in life. It provides a perspective as to how many steps you must walk to reach your end destination –– your financial goal.

  2. Mark your needs and desires against them

    A clear distinction between wants and desires outlines a vivid picture of your overall financial goals. Depending on your needs you can prioritise them.

    Further, rank your goals in order of importance. This is because only then will you realise the urgency of some goals and meet them on time.

  3. Add a time horizon to classify

    In addition to prioritising financial goals, it is imperative to keep in mind the time horizon remaining before goals befall. Accordingly, classify goals into a short-term, medium-term, and long-term.

    Examples of Short-term goals (1-2 years):

    • Saving for contingency needs/medical expenses (a rainy-day fund)

    • Saving to buy a two-wheeler

    • Saving for a short vacation

    • Saving for own wedding expenses – which is say just a few months to a year down the line

    Examples of Medium-term goals (2-3 years):

    • You plan to avail of a home loan in a couple of years from now and want to save for the down-payment

    • Plan to purchase a car three years down the line

    Examples of Long-term goals (3 years and more):

    • Children’s future needs – their higher education and wedding expenses

    • Saving for retirement

    • Saving for a dream vacation

    It is a universal fact that we individuals, work only when we are time-bound. If you set a goal without classifying and setting a time, you will never achieve it.

  4. Estimate the corpus you need to achieve each financial goal

    Each financial goal carries a future value. Hence, not only saving but investing the money in productive investment avenues is imperative. This way, you counter inflation effectively and the power of compounding works in your favour.

    Depending on the time horizon in hand to fulfil a goal, choose your investment avenues wisely.

    If you wish to know how much money you need to save and invest wisely, use PersonalFN’s retirement planning calculator.

  5. Get started to accomplish the envisioned financial goals

    Be vigilant with the investment avenues you opt for – there is a plethora of them. So, if you are choosing Equity mutual funds for the fact that you have long-term goals to achieve and have a high-risk appetite, make sure you opt for an appropriate sub-category of equity funds. Choose the ones that have displayed a consistent performance track record and are likely to do so even in the future.

    Make sure you invest in accordance with the asset allocation that is best suited for you.

    [Read: Why You Should Not Ignore Personalized Asset Allocation While Investing?]

  6. Review your financial goals rationally

    Once you invest in the endeavour to accomplish your financial goals with all the facts, figures, and timelines in place, review your financial goals regularly. This will enable you to recognise if you are on track and make the necessary adjustments to accomplish the envisioned financial goal/s.

    Similarly, there would be certain financial goals which you may have achieved. Strike them off from your financial goal worksheet. Likewise, if you feel there are certain goals which are needed to be adjusted or revisited, do it.

If you are unaware of different investment instruments and how to go about doing your own financial planning, consult PersonalFN’s SEBI-registered investment advisers, who serve as Financial Guardians, always putting your interest at the fore and providing independent and unbiased advice, handholding you to accomplish your financial goals. You can call us on 022-61361200 or write to us 

[Read: Are You Avoiding Meeting A Financial Planner? You Are Making A Grave Mistake!]

In the entire goal planning process, make sure you don’t ape what your friends and relatives do to accomplish their financial goals. Because as Lucretius has rightly said- ‘One Man's food is another Man's Poison’.

Investing and goal planning are individualistic exercises.

Make sure you have your financial goal worksheet ready and act upon it in the interest of your financial health and well-being.

Editor's note:

What if I tell you that unusual and lesser-known funds are capable of big gains for you, the investor?

Yes, you can. Seriously!

However, you need to look beyond star-ratings and popularity of the mutual fund schemes, to identify the hidden gems that you have probably never heard of, but still, carry commendable management qualities and portfolio features that offer superior growth potential to become category outperformers in the long run.

Believe it or not, unusual and lesser-known funds can generate big gains for you, the investor.

Want to know which are the ‘Undiscovered’ funds? Click here to read more…

PersonalFN’s brand new research report: 5 Undiscovered Equity Funds – With High Growth Potential is meant just for you.


Happy Investing!

Add Comments

Oct 01, 2018

You can start your financial goals as earlier as you are young so that in future there is no financial crisis to be face as in future there is lots of amount is needed for financial as expenditure is more and more and due to inflection per year it is very hard to save money in growing age.

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